Daido Steel to Hike Stainless Wire Rod Price

Daido Steel increases the selling price of stainless steel wire rod by 60,000 yen per tonne or 15-20% for nickel series stainless and by 5,000 yen or 2-3% for chrome series products for September order. The firm tries to cover higher raw materials cost through the hike.

The firm increases the nickel series products’ price after hike for June order while the chrome series price hike is the first time since May 2008. The firm tries to pass higher cost for nickel and ferrochrome citing molybdenum price increased by around 50% from the bottom. The firm also revises the extra charge for the grades.

The firm considers additional price hike when the raw materials cost increases more than the level for the new price. The firm already increased the export price for Asian countries to reflect higher raw materials cost.

The firm sees the stainless wire rod inventory at the major users decreased for rerollers and drawers while some users are still middle of inventory adjustment. The firm’s stainless wire rod operation recovers 70-80% of the peak in first half of 2008 due to higher operation at the users including automobile and digital appliances industries.